December 20, 2012

Mumbai

Star Delta Transformers Limited

Ratings Suspended

Total Bank Loan Facilities Rated	Rs.240 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for details on facilities)

CRISIL has suspended its ratings on the bank facilities of Star Delta Transformers Limited (SDTL). The suspension of ratings is on account of non-cooperation by SDTL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SDTL is yet to provide adequate information to enable CRISIL to assess SDTL’s ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’.

About the Company

Promoted by Mr. L N Gupta and Mr. Kishore Gupta, SDTL was set up in the late 1970s. The company’s manufacturing facility, spread over 80,000 square feet, is located in Bhopal (Madhya Pradesh). SDTL commenced operations by manufacturing small-capacity distribution transformers of up to 11 kilovolt amperes; it began manufacturing power transformers in the early 1990s. It also undertakes small–scale turnkey projects, which include designing, erecting, testing and commissioning of materials for sub-stations; however, the company was not able to execute any such project in 2010-11. The main customer of the company in this segment is MPSEB.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Bank Guarantee	130	Suspended	Bank Guarantee	130	CRISIL A3+
Cash Credit	70	Suspended	Cash Credit	70	CRISIL BBB/Stable
Letter of Credit	20	Suspended	Letter of Credit	20	CRISIL A3+
Proposed Short-Term Bank Loan Facility	20	Suspended	Proposed Short-Term Bank Loan Facility	20	CRISIL A3+
Total	240	--	Total	240	--

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email:tanuja.abhinandan@crisil.com Shweta Ramchandani Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1886 E-mail: shweta.ramchandani@crisil.com	Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-0124-672 2000 Email: subodh.rai@crisil.com Arvind L Rao Director – CRISIL Ratings Tel: +91-22-4097 8278 Email: arvind.rao@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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Last updated: April 30, 2012

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December 20, 2012	http://www.crisil.com